When paying an electric bill of $250, which journal is appropriate for this transaction?

In this scenario, the transaction of paying an electric bill falls under cash outflows, as money is being disbursed to settle an expense. The appropriate journal for recording this type of transaction is the cash disbursements journal. This journal is specifically designed to track all transactions that involve cash payments made by the business.

Transactions recorded in the cash disbursements journal typically include payments for operating expenses, like utilities, rent, salaries, and any other expenditures resulting in cash leaving the business. By maintaining this journal, a business can effectively monitor its cash outflows, ensuring accurate financial reporting and cash management.

Other options would not be suitable for this transaction. The general journal is typically used for transactions that don’t fit neatly into other specific journals or for adjustments; the purchases journal is used primarily to record inventory acquisitions rather than regular operating expenses; and the cash receipts journal is used to record cash inflows rather than outflows. Thus, the cash disbursements journal is the correct choice for documenting the payment of the electric bill.